NEW YORK (AP) — More than 30 states will resume their antitrust lawsuits against LiveNation and Ticketmaster on Monday after negotiations broke down this week that led to several states joining a temporary settlement brokered by the Justice Department.
Lawyers told a judge during a hearing in New York on Friday that seven states — Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, South Carolina and South Dakota, all of which have Republican attorneys general — joined the Justice Department in settling with the live music giant.
Another 32 states, along with the District of Columbia, plan to continue trying to convince a jury that Life Nation Entertainment and its ticketing subsidiary, Ticketmaster, are competing and raising prices for fans. They say it’s done through threats, retaliation and other tactics to control every aspect of the industry, from concert promotion to ticketing.
The companies say they don’t monopolize their industry and artists, sports teams and venues set prices and decide how tickets are sold.
A jury had already begun hearing testimony in the trial when the U.S. Department of Justice, which took the lead in Live Nation’s trial, said it had reached a deal with the company that would save the public money by allowing Live Nation’s competitors into some ticket markets where they are currently excluded.
Several states criticized the deal, saying the federal government failed to extract enough concessions from the company.
Testimony was suspended for a week for further settlement negotiations, but seeing no progress, Judge Arun Subramanian said Friday that the trial would resume.
The judge also ruled on Live Nation’s objection to trial exhibits in which an employee of the company told another employee several years ago that Live Nation’s charges for access to the VIP area of a Tampa, Florida, amphitheater were “reprehensible,” that paying customers was “pretty stupid” and that “I feel bad for them before writing HAHAHABA.”
Live Nation had argued against their inclusion in the lawsuit, saying employees “referred to non-ticket ancillary products – such as VIP club access, premier parking, or lawn chair rentals – sold to concertgoers at two amphitheatres” in Florida and Virginia.
Judge said the entire fan experience is about the relationship between performers and their customers, and some performers may not want to perform if fans are charged more for lawn chairs or other amenities.
Subramaniam said it’s no different than the damage that might happen to the movie industry if movie theaters charge $50 for concessions like soda, candy and popcorn.
